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Aviva weathers pensions storm as bulk annuity sales rocket up

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Aviva was one of the top risers on the FTSE 100 yesterday, following publication of its half-year results.

Its shares rose almost three per cent after reporting that operating profit for the half-year period was up four per cent to £1.05bn.

The strong results prove Aviva is weathering the storm created by chancellor George Osborne when he revealed sweeping changes to the pensions market earlier this year. While annuities sales fell by 23 per cent in the first half of 2014, sale of bulk annuities more than doubled, with chief executive Mark Wilson promising sales of bulk annuities will increase further still in the second half of this year.

“The half-year results show that momentum in Aviva’s turnaround continues. All of our key metrics have improved, operating earnings per share are up 16 per cent, and book value has increased seven per cent,” Wilson said.

“We have reduced our debt, decreased expenses and increased profit – this is just good business. Aviva remains a work in progress, and these results are a step in the right direction,” he added.